President-elect Donald Trump has stated that he does not plan to remove Jerome Powell as Federal Reserve Chairman before his term ends in May 2026.
In an interview with NBC News’ Meet the Press, Trump made it clear that while he has no intention of ousting Powell, he intends to press forward with a series of ambitious economic policies upon taking office in January, including tariffs, mass deportations, and tax cuts.
Trump’s comments come amidst growing concerns over the potential influence of his administration on the Federal Reserve’s independence. Powell, who was appointed by Trump in 2017 and later renominated by President Joe Biden, has faced criticism from the president-elect in the past, particularly over the Fed’s interest rate policies. During his first term, Trump frequently called Powell an “enemy” for not lowering interest rates more aggressively, and at one point suggested he might seek to replace him.
However, in the recent interview, Trump downplayed any plans to remove Powell. When asked if he would replace Powell, Trump responded:
“I don’t think so. I don’t see it.”
He added that if he were to instruct Powell to step down, the Fed chair would comply, but noted that Powell would likely not resign voluntarily.
Powell himself has emphasized that he does not believe the president has the legal authority to remove him from office, a view supported by legal experts, though this question has never been tested in court. In the days following Trump’s election victory, Powell reiterated his commitment to maintaining the Fed’s independence, stating that he would not step down even if asked.
Trump’s remarks also highlight his broader economic agenda, which includes pursuing aggressive tariff policies. Despite acknowledging the possibility of higher prices for consumers as a result of these tariffs, Trump argued that such measures are necessary to address trade imbalances and protect US interests. He has also expressed plans to reduce government spending, including raising the eligibility age for entitlement programs like Social Security and Medicare, and cutting aid to Ukraine.
Economists are concerned that Trump’s policies, including tariffs and mass deportations, could increase inflationary pressures, making it more difficult for the Fed to manage interest rates and stabilize the economy. While the Fed has already cut interest rates in recent months, officials have indicated that the pace of rate cuts may slow in 2025 as economic conditions evolve.
In addition to economic policies, Trump has vowed to tackle immigration issues, reiterating his commitment to deporting illegal immigrants and ending birthright citizenship through executive action. He also reaffirmed his position on NATO, stating that he would remain committed to the alliance only if other member countries met their defense spending obligations.
With input from the New York Times. Bloomberg, and the Financial Times.
